On Friday, the official fiat currency of 19 out of the 27 member states of the European Union (EU), the euro, plunged to a low of $0.9732 against the U.S. dollar. The drop comes at a time when fiat currencies like the yen, yuan, and pound have struggled against the greenback during the past six months. Analysts claim the pound and euro are trapped in a “doom loop” and it’s also been said that the U.S. dollar is “the only possible hedge” against a failing global economy.
Strange days have found us in the world of finance, fiat currencies, stocks, bonds, and cryptocurrencies. On Friday, September 23, the European Union’s fiat currency the euro has been struggling against the U.S. dollar and slipped below parity as the weekend nears. The euro is currently trading for $0.97 and it tumbled to a low of $0.9732 during the morning trading sessions (10 a.m. ET). The euro has lost more than 1% against the greenback in 24 hours and it’s the lowest it’s been in 20 years.
Bloomberg contributors Sofia Horta e Costa and Ruth Carson recently referenced analysts from Citigroup Inc. and the views of the Canadian Imperial Bank of Commerce. “The surging dollar has caused a lot of people to believe the only safe haven asset is the U.S. currency,” the writers explained last week. The duo received a research note from Citi strategists Jamie Fahy and Adam Pickett who discuss the phenomena surrounding the U.S. dollar.
“The only place to hide is in US dollar cash,” the Citi strategists claim. A “deep recession” will drop inflation the bank’s financial strategists add. Win Thin, the lead currency strategy analyst at Brown Brothers Harriman in New York says the macroeconomic backdrop seems to favor the dollar. “The repricing of Fed tightening risks is likely to keep the dollar bid across the board in the near term,” the Brown Brothers Harriman executive said. Brown Brothers Harriman’s currency strategy analyst continued:
As we said during this most recent dollar correction lower, nothing has really changed fundamentally and the global backdrop continues to favor the dollar and U.S. assets in general.
Strategists at TD Securities believe the euro and pound are stuck in a “doom loop” and the company’s analysts think it may get worse over the next few months. TD Securities strategists working alongside James Rossiter detailed on Friday that the doom loop is caused by weak economic growth and rising energy costs.
The TD Securities analysts think the sterling pound will sink another 3% from current standings. Rossiter and the team at TD say the European Central Bank (ECB) and the Bank of England (BOE) can only do so much.
“While both the ECB and BOE want to slow and eventually reverse this loop, monetary policy can only limit the slowdown significantly ahead of the coming winter,” the currency strategists remarked. “Policymakers can’t produce the needed energy supply.”
What do you think about the euro slipping to $0.9733 against the U.S. dollar and the analysts predictions concerning the fiat currency? Let us know what you think about this subject in the comments section below.
Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.
Image Credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
Oman to Incorporate Real Estate Tokenization in Virtual Assets Regulatory Framework
Real estate tokenization is set to be incorporated into Oman Capital Markets Authority (OCMA)'s virtual asset regulatory framework. According to an advisor with the authority, the tokenizing of real estate will open investment opportunities for local and foreign investors. Real ... read more.
On Friday, the official fiat currency of 19 out of the 27 member states of the European Union (EU), the euro, plunged to a low of $0.9732 against the U.S. dollar. The drop comes at a time when fiat currencies like the yen, yuan, and pound have struggled against the greenback during the past six months. Analysts claim the pound and euro are trapped in a “doom loop” and it’s also been said that the U.S. dollar is “the only possible hedge” against a failing global economy.
Strange days have found us in the world of finance, fiat currencies, stocks, bonds, and cryptocurrencies. On Friday, September 23, the European Union’s fiat currency the euro has been struggling against the U.S. dollar and slipped below parity as the weekend nears. The euro is currently trading for $0.97 and it tumbled to a low of $0.9732 during the morning trading sessions (10 a.m. ET). The euro has lost more than 1% against the greenback in 24 hours and it’s the lowest it’s been in 20 years.
Bloomberg contributors Sofia Horta e Costa and Ruth Carson recently referenced analysts from Citigroup Inc. and the views of the Canadian Imperial Bank of Commerce. “The surging dollar has caused a lot of people to believe the only safe haven asset is the U.S. currency,” the writers explained last week. The duo received a research note from Citi strategists Jamie Fahy and Adam Pickett who discuss the phenomena surrounding the U.S. dollar.
“The only place to hide is in US dollar cash,” the Citi strategists claim. A “deep recession” will drop inflation the bank’s financial strategists add. Win Thin, the lead currency strategy analyst at Brown Brothers Harriman in New York says the macroeconomic backdrop seems to favor the dollar. “The repricing of Fed tightening risks is likely to keep the dollar bid across the board in the near term,” the Brown Brothers Harriman executive said. Brown Brothers Harriman’s currency strategy analyst continued:
As we said during this most recent dollar correction lower, nothing has really changed fundamentally and the global backdrop continues to favor the dollar and U.S. assets in general.
Strategists at TD Securities believe the euro and pound are stuck in a “doom loop” and the company’s analysts think it may get worse over the next few months. TD Securities strategists working alongside James Rossiter detailed on Friday that the doom loop is caused by weak economic growth and rising energy costs.
The TD Securities analysts think the sterling pound will sink another 3% from current standings. Rossiter and the team at TD say the European Central Bank (ECB) and the Bank of England (BOE) can only do so much.
“While both the ECB and BOE want to slow and eventually reverse this loop, monetary policy can only limit the slowdown significantly ahead of the coming winter,” the currency strategists remarked. “Policymakers can’t produce the needed energy supply.”
What do you think about the euro slipping to $0.9733 against the U.S. dollar and the analysts predictions concerning the fiat currency? Let us know what you think about this subject in the comments section below.
Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.
Image Credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
Oman to Incorporate Real Estate Tokenization in Virtual Assets Regulatory Framework
Real estate tokenization is set to be incorporated into Oman Capital Markets Authority (OCMA)'s virtual asset regulatory framework. According to an advisor with the authority, the tokenizing of real estate will open investment opportunities for local and foreign investors. Real ... read more.
Xrp was once again higher on Friday, as the token hit a 4-month high for a third consecutive session. The token formerly known as ripple has risen by over 50% in the last seven days, despite the current market volatility. Cronos was also a notable mover today, climbing by nearly 15%.
XRP was higher for a second consecutive session on Friday, as the token moved to a fresh four-month high.
Following a low of $0.3398 to start the week, XRP/USD rose to an intraday peak of $0.5523 earlier today.
As a result of today’s surge, which saw the price climb by over 10%, XRP climbed to its highest point since May 9.
Looking at the chart, the move comes as the token raced past its long-term ceiling of $0.5000, sending the 14-day relative strength index (RSI) to a recent high.
As of writing, the index is currently tracking at 72.57, which is its strongest point since August 2021.
Since earlier highs, XRP has moved lower, as previous bulls appear to have liquidated their positions, securing gains in the process.
Should bears see this as an opportunity to reenter the market, we could see XRP begin to reverse course.
Cronos (CRO) was another notable gainer in today’s session, as the token rose past a key resistance level.
CRO/USD surged to a high of $0.1226 on Friday, which saw prices move beyond their recent ceiling of $0.1145.
Today’s peak is the strongest point that cronos has hit in the past ten days, pushing CRO close to a ceiling of $0.1260.
In addition to the breakout of the recent resistance level of $0.1145, there has also been a breakout of a ceiling of 50.50 on the RSI indicator.
As you can see from the chart, the 10-day (red) moving average also looks to be closing in with its 25-day (blue) counterpart, which could lead to an upwards crossover.
Overall, the token is currently trading nearly 14% higher from the same period last week.
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Will we see momentum in cryptocurrency markets rise this coming weekend? Let us know your thoughts in the comments.
Eliman brings an eclectic point of view to market analysis, he was previously a brokerage director and retail trading educator. Currently, he acts as a commentator across various asset classes, including Crypto, Stocks and FX.
Image Credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
Central Bank of Brazil Confirms It Will Run a Pilot Test for Its CBDC This Year
The Central Bank of Brazil has confirmed that the institution will run a pilot test regarding the implementation of its proposed central bank digital currency (CBDC), the digital real. Roberto Campos Neto, president of the bank, also stated that this ... read more.
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